US stock futures fell as of Monday nationwide increase in coronavirus infections and the bleak outlook for another stimulus package upset Wall Street.
Futures contracts, which were pegged to the Dow Jones industrial average, fell 260.00 points, or 0.9 percent, to 27,929.00 as of 7:39 a.m. after the US added more than 83,000 on both Friday and Saturday COVID-19 cases recorded – breaking the previous peak of around 77,000 in mid-July.
Futures related to the benchmark index S&P 500 also fell 0.8 percent from 7:40 a.m., while futures for the tech-heavy Nasdaq 100 recently fell about 0.6 percent.
Investors were shocked by the reappearance of the virus, which could cause even more damage in the colder autumn and winter months. The recent spikes in infection have led to renewed lockdown measures in European countries such as the UK and Italy and raised further questions about the economic damage of the pandemic.
It is also becoming increasingly unlikely that Congress and the Trump administration will reach an agreement on a new stimulus package ahead of the November 3 presidential election to mitigate the economic impact of the virus. House spokeswoman Nancy Pelosi said Sunday that she is not giving up hope of a deal, but Senate majority leader Mitch McConnell has reportedly opposed a large spending package.
“Given the high risk of events this week, I believe that sustained returns for the equity markets are hard to come by when a US fiscal package magically appears,” said Jeffrey Halley, senior market analyst at OANDA. said in a comment. “In my opinion, investors are far more likely to take risks off the table [Election Day]. ”
Wall Street appeared poised to follow European and Asian markets deeper in the final full week of trading leading up to the election. The SSE Composite Index in Shanghai closed 0.8 percent and the South Korean KOSPI closed 0.7 percent. The London FTSE 100 fell about 0.2 percent at 7:37 a.m., while the German DAX recently fell about 2.3 percent.
With postal wires